Northleaf Capital Partners has raised approximately $450m (£332.5m) for its inaugural low-correlation asset-based specialty finance fund at final close.

The amount raised includes commitments to the fund and co-investment vehicles investing alongside it.

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The Northleaf Asset-Based Specialty Finance Fund builds on the private markets firm’s asset-based specialty finance investing platform, which has invested around $1.4bn across 21 investments since 2018.

Managed by Northleaf’s asset-based specialty finance investment team, the strategy targets specialised asset verticals, including entertainment royalties, legal assets, healthcare receivables and factoring.

It leverages the Toronto-headquartered manager’s global private markets platform to invest across the US, Canada, Europe and Australia.

“As markets have become more volatile, we’ve seen investors place a greater emphasis on resilience and diversification within their private credit portfolios,” said David Ross, managing director and head of private credit at Northleaf.

“Asset-based specialty finance offers a complementary set of return drivers compared to many traditional credit strategies, combining attractive cash yield with low-correlation assets and strong downside protections. This strategy reflects years of building the relationships, underwriting expertise and origination capabilities that are critical to investing in this market.”

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The private markets investor has also expanded its private credit leadership team, with the recent appointment of JD Gettmann as managing director and global head of asset-based specialty finance to support the strategy’s continued growth. 

He joins Northleaf from MidCap Financial, where he co-founded and led the lender finance business.

“Northleaf has built a differentiated asset-based specialty finance platform, supported by a strong track record, disciplined underwriting and deep origination relationships,” said Gettmann. 

“I’m excited to build on that foundation, work alongside the existing team and expand the platform strategically by deepening our origination capabilities, broadening our investment solutions and continuing to deliver attractive risk-adjusted returns and meaningful diversification for Northleaf’s investors.”

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